Maxwell Corp

question 12

Multiple Choice

Maxwell Corp.is coming to the market with a new offering of 300,000 shares,at $25 to the public.Maxwell will receive $22 per share.The firm has 1 million shares outstanding and earnings of $6 million.What is the amount of dilution in earnings per share?

• A) $2.00.
• B) $1.38.
• C) $1.77.
• D) No dilution occurs since new money is received by Maxwell.

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Definitions:

Fetuses

The developmental stage of human beings in the womb from the end of the eighth week after conception until birth.

Wakefulness

The state of being awake and aware of one's surroundings, characterized by active engagement with the environment and cognitive processes.

Sleep

A natural, reversible state of rest for the mind and body, essential for health and cognition.

Developing Embryo

Describes the early stage of fetal development post-conception, characterized by rapid cellular division and differentiation.